Archive for ‘Transport’

08/07/2014

Car maker Tesla sued in China for trademark infringement | Reuters

U.S. electric car maker Tesla Motors Inc (TSLA.O) is being sued in China for trademark infringement, a surprise development that casts a shadow over CEO Elon Musk‘s ambition to expand rapidly in the world’s biggest auto market.

A Tesla Motors logo is shown at a Tesla Motors dealership at Corte Madera Village, an outdoor retail mall, in Corte Madera, California May 8, 2014. REUTERS/Robert Galbraith

Tesla said in January that the trademark dispute between it and Chinese businessman Zhan Baosheng – long seen by analysts as a barrier to Tesla’s entry into China – had been resolved. The car maker began delivering its Model S sedans to Chinese customers in April.

But Zhan, who registered the “Tesla” trademark before the U.S. company came to China, is now taking Tesla to court, demanding that it stop all sales and marketing activities in China, shut down showrooms and supercharging facilities and pay him 23.9 million yuan ($3.85 million) in compensation, his lawyer Zhu Dongxing said on Tuesday.

The Beijing Third Intermediate Court will hear the case on Aug. 5, according to a statement on the court’s website. Tesla China declined comment. Zhan declined to be interviewed.

The case underscores one of the thorniest problems faced by foreign firms in China. Global companies including Apple Inc (AAPL.O), Koninklijke Philips NV (PHG.AS) and Unilever NV (UNc.AS) have all been embroiled in trademark disputes in the country in the past.

Zhan, who claims ownership of the “Tesla” trademark, has long been a headache for the Palo Alto, California-based car maker and in part contributed to Tesla’s belated arrival in China.

Based in China’s southern province of Guangdong, Zhan registered the trademarks to the Tesla name in both English and Chinese in 2006. He had in the past sought to sell the label to the U.S. company but negotiations collapsed.

In January, Veronica Wu, head of Tesla’s China operations, told Reuters the company had resolved the trademark dispute that had prevented it from using “Te Si La”, the Chinese name best known among Chinese consumers, which Tesla wanted to use in China.

Zhan’s current lawsuit, however, brings new uncertainty to Tesla’s fate in China, which the firm had expected to become its biggest global market next year.

Apple Inc was embroiled in a similar case for years before reaching a $60 million deal last year for the rights to use the iPad trademark in China.

via Car maker Tesla sued in China for trademark infringement | Reuters.

13/06/2014

Can Asia’s Biggest Low-Fare Airline, AirAsia, Make Money in India? – Businessweek

After successfully building the largest low-cost airline in Southeast Asia, AirAsia’s (AIRA:MK) chief executive, Tony Fernandes, is taking on one of his biggest challenges yet: Making money in a country with some of the highest operating costs in Asia. Today, AirAsia India, a joint venture with Tata Sons and Telestra Tradeplace, began flying in India, where a crowded market and high costs have pushed several major carriers into the red. Because of high jet fuel taxes and airport charges, operating an airline in India can cost as much as 60 percent more than in nearby countries, KPMG India partner Amber Dubey said on Bloomberg Television today.

An AirAsia India Airbus A320 takes off as it embarks on the carrier's inaugural domestic flight to Goa from the Kempe Gowda International Airport in Bangalore on June 12

But with new Prime Minister Narendra Modi inspiring confidence that things will finally change for the better in India, Fernandes “is very optimistic,” he told Bloomberg Television today. “State governments are very aviation friendly at the moment; there is a strong national government that has put tourism at the top of its agenda,” he said. “It’s all about the timing.” AirAsia is starting small in India, with only two planes, although Fernandes says the plan is scale up to six. At that level, “we are very confident of breaking even,” he said.

That won’t be easy. While India has several weak incumbents, such as Jet Airways (JETIN:IN) and SpiceJet (SJET:IN), the country is also home to IndiGo, the biggest domestic carrier by market share. IndiGo has plans to more than double its fleet to 150 planes by 2023, its president, Aditya Ghosh, told Bloomberg News in September. It has greeted AirAsia’s arrival by introducing group discounts of up to 25 percent and offering flights between Bangalore and Goa for one single rupee. With a fare war already under way, “no way can anyone make profits,” KPMG’s Dubey told Bloomberg Television today.

via Can Asia’s Biggest Low-Fare Airline, AirAsia, Make Money in India? – Businessweek.

13/06/2014

Poland-China train leaves the station on first trip – World – Chinadaily.com.cn

The first “New Silk Road” Yuxinou railway return train from Poland to China kicked off on Thursday, the Chongqing government said.

 

Starting in Chongqing, the 11,178 km Chongqing-Xinjiang-Europe International Railway passes through Xi’an, Lanzhou, Urumqi , Russia, Belarus and Poland, finally ending in Duisburg, Germany.

According to the government, it takes just 16 days on average to transport goods from China to Europe by rail, much less than via the sea.

Xu Qiang, director of the Development and Reform Commission of Chongqing Municipality, said China launched the first train from Poland to Chongqing to enhance cooperation between China and Europe.

“It is an important landmark for our New Silk Road, which will strengthen China’s bilateral economic ties with the regions along the railway,” Xu said.

In recent years, Poland and China have formed closer ties in political and economic perspectives, said Jacek Zuber, chief of the Department of International Cooperation Ministry of Infrastructure and Development of Poland.

“Yuxinou railway is one of the most important cooperation projects to us, especially as the railway will bring great opportunities to our trade with China,” he said.

The first train will bring electronic products, auto parts and steel products to Chongqing.

via Poland-China train leaves the station on first trip – World – Chinadaily.com.cn.

13/05/2014

India Poll Prospects Drive Auto Shares – India Real Time – WSJ

Shares of most automobile companies in India surged on Tuesday on expectations that the pro-business Bharatiya Janata Party will emerge victorious when national election results are announced Friday.

Maruti Suzuki India Ltd.532500.BY +1.97%, Mahindra & Mahindra Ltd.500520.BY +1.40%, Tata Motors Ltd.500570.BY +0.81%, Ashok Leyland Ltd.500477.BY +1.19% and Hero MotoCorp Ltd.500182.BY +3.17% were trading around their 52-week highs when markets closed Tuesday evening.

“This (share-buying) is mainly sentiment-driven,” said an analyst at a Mumbai-based brokerage, who did not wish to be named.  He expected auto shares to trade even higher if a BJP-led government with a clear majority were to emerge the winners of India’s federal election.

The analyst said investors are hoping that a government led by BJP’s Prime Ministerial candidate Narendra Modi would take strong steps to revive economic growth, increase foreign investment, and boost industrial growth, which would in turn improve market sentiment and demand for new vehicles in India, the world’s sixth-largest car producing market.

via India Poll Prospects Drive Auto Shares – India Real Time – WSJ.

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11/05/2014

China Says It Wants To Build Massive Railway To America

China has announced an ambitious engineering plan to build a bullet train railway to America, state media reported Thursday.

Possible route of a bridge or tunnel across th...

Possible route of a bridge or tunnel across the Bering Strait. (Photo credit: Wikipedia)

The massive railway network, nicknamed “China-Russia-Canada-America,” would run north from China, through Siberia and Russia, under the Pacific Ocean to Alaska, then down through Canada to the contiguous United States, The Guardian reports.

The trip from China to the contiguous U.S. would take less than two days, with trains traveling about 217 mph, according to The Beijing Times. China will reportedly fund the construction of the 8,079 miles of railway track, including a 125-mile underwater tunnel across the Bering Strait from Russia to Alaska.

But this may not be the best time for China to embark on such an epic undertaking, considering the country’s railway industry is in the red, as The Economic Times points out.

“China’s railway sector is still being haunted by deep debts. Therefore, even with the government’s support, it must persuade banks to lend a colossal amount of money,” an unnamed expert from Beijing Jiaotong University told The Economic Times.

Aside from financial challenges, many are skeptical of whether the engineering required to build such a massive network is feasible.

According to The Guardian, “The Bering Strait tunnel alone would require an unprecedented feat of engineering – it would be the world’s longest undersea tunnel – four times the length of the Channel Tunnel” connecting the United Kingdom and France.

China Daily claims that the technology needed to construct the undersea tunnel is already available. But even if it is, The Economist’s Gulliver business travel blog says the railway plan is simply not a realistic or necessary project.

“Languorous tourists might love it, just as they do the Orient Express or the Ghan train through the Australian Outback, and I suppose it might also carry some freight. But still, there is no practical case for it,” the blog post’s author writes. “Nonetheless, such ambition is to be admired in an abstract way.”

The Guardian notes that it is unclear whether China has consulted Russia, the U.S. or Canada about the project.

via China Says It Wants To Build Massive Railway To America.

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09/05/2014

China’s ‘New Silk Road’ Vision Revealed | The Diplomat

On Thursday, China’s state-owned Xinhua News Agency unveiled an ongoing feature entitled “New Silk Road, New Dreams.” The series promises to “dig up the historical and cultural meaning of the Silk Road, and spread awareness of China’s friendly policies towards neighboring countries.” The first article [Chinese] was titled  “How Can the World Be Win-Win? China Is Answering the Question.”

Xinhua Silk Road Map

The Xinhua series promises the clearest look so far at China’s vision for its Silk Road Economic Belt as well as the Maritime Silk Road. One of the most intriguing pieces released Thursday was a map showing China’s ambitious visions for the “New Silk Road” and “New Maritime Silk Road.” It’s the clearest vision to date of the scope of China’s Silk Road plan.

According to the map, the land-based “New Silk Road” will begin in Xi’an in central China before stretching west through Lanzhou (Gansu province), Urumqi (Xinjiang), and Khorgas (Xinjiang), which is near the border with Kazakhstan. The Silk Road then runs southwest from Central Asia to northern Iran before swinging west through Iraq, Syria, and Turkey. From Istanbul, the Silk Road crosses the Bosporus Strait and heads northwest through Europe, including Bulgaria, Romania, the Czech Republic, and Germany. Reaching Duisburg in Germany, it swings north to Rotterdam in the Netherlands. From Rotterdam, the path runs south to Venice, Italy — where it meets up with the equally ambitious Maritime Silk Road.

The Maritime Silk Road will begin in Quanzhou in Fujian province, and also hit Guangzhou (Guangdong pronvince), Beihai (Guangxi), and Haikou (Hainan) before heading south to the Malacca Strait. From Kuala Lumpur, the Maritime Silk Road heads to Kolkata, India then crosses the rest of the Indian Ocean to Nairobi, Kenya (the Xinhua map does not include a stop in Sri Lanka, despite indications in February that the island country would be a part of the Maritime Silk Road). From Nairobi, the Maritime Silk Road goes north around the Horn of Africa and moves through the Red Sea into the Mediterranean, with a stop in Athens before meeting the land-based Silk Road in Venice.

The maps of the two Silk Roads drive home the enormous scale of the project: the Silk Road and Maritime Silk Road combined will create a massive loop linking three continents. If any single image conveys China’s ambitions to reclaim its place as the “Middle Kingdom,” linked to the world by trade and cultural exchanges, the Xinhua map is it. Even the name of the project, the Silk Road, is inextricably linked to China’s past as a source of goods and information for the rest of the world.

China’s economic vision is no less expansive than the geographic vision. According to the Xinhua article, the Silk Road will bring “new opportunities and a new future to China and every country along the road that is seeking to develop.” The article envisions an “economic cooperation area” that stretches from the Western Pacific to the Baltic Sea.

Despite this expansive goal, it’s not quite clear yet exactly what will tie together the disparate countries along the New Silk Road (both on land and at sea). China has discussed building up infrastructure (especially railways and ports) along the route, yet the Xinhua article specifically says the vision includes more than simply speedy transportation. China envisions a trade network where “goods are more abundant and trade is more high-end.” Beijing expects the economic contact along the Silk Roads to boost productivity in each country. As part of this vision, China has repeatedly stressed its economic compatibility with many of the countries along the planned route, and offered technological assistance to countries in key industries.

China also envisions the Silk Road as a region of “more capital convergence and currency integration” — in other words, a region where currency exchanges are fluid and easy. Xinhua notes that China’s currency, the renminbi, is becoming more widely used in Mongolia, Kazakhstan, Uzbekistan, Vietnam, and Thailand. Yet the article does not call for the renminbi to become the Silk Road’s primary currency, but rather hopes that local currencies will be the dominant means of economic deals.

From economic exchanges, China hopes to gain closer cultural and political ties with each of the countries along the Silk Road — resulting in a new model of “mutual respect and mutual trust.” The Silk Road creates not just an economic trade route, but a community with “common interests, fate, and responsibilities.” The Silk Road represents China’s visions for an interdependent economic and political community stretching from East Asia to western Europe, and it’s clear that China believes its principles will be the guiding force in this new community. “China’s wisdom for building an open world economy and open international relations is being drawn on more and more each day,” Xinhua wrote.

But for all the ambitious talk, details remain scarce on how this vision will be implemented. Will the land- and sea-based Silk Roads be limited to a string of bilateral agreements between China and individual countries, or between China and regional groups like the European Union and ASEAN? Is there a grander vision, such as a regional free trade zone incorporating all the Silk Road countries?  Or will China be the tie that binds it all together, with no special agreements directly linking, say, Kazakhstan and Germany?

via China’s ‘New Silk Road’ Vision Revealed | The Diplomat.

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24/04/2014

China-Europe railway relaunches – China – Chinadaily.com.cn

A freight train on Wednesday began a journey from central China’s key city of Wuhan to Poland’s Lodz, restarting the Wuhan-Xijiang-Europe rail route after it was suspended for technical reasons.

Its 15-day journey will pass along the Silk Road economic belt through major cities in central and northwest China, Kazakhstan, Russia and Belarus before arriving in the destination.

The rail trip is about one month quicker than the maritime alternative, and costs a fifth as much as air freight, according to the Wuhan Transport Committee.

“It will greatly improve the competitiveness of exports made in Wuhan and nearby regions,” said Yu Shiping, director of the committee.

He predicted that it will contribute to the realization of the Silk Road economic belt, the regional trade infrastructure proposed by Chinese President Xi Jinping.

The train is loaded with 41 40-foot containers holding goods valued at more than 12 million U.S. dollars.

Most of them are products made by Hon Hai/Foxconn, the world’s largest electronics contract manufacturer, which assembles products for Apple, Sony and Nokia in its plant in Wuhan, capital of Hubei Province.

Although railway transport is costly compared to maritime transport, it is a superior option bearing in mind how wildly electronic products prices fluctuate. They are more sensitive to the time-cost in transportation, according to the Foxconn plant in Wuhan.

In a month, the export value of one consignment of electronic products might devalue by about two percent, about several tens of thousands of dollars.

via China-Europe railway relaunches – China – Chinadaily.com.cn.

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19/04/2014

Audi expects to sell half million cars in China this year | Reuters

Volkswagen‘s (VOWG_p.DE) luxury division Audi plans to sell about half a million cars this year in China, the world’s biggest auto market, and raise the number of its Chinese dealers to 500 by 2017.

The company logo is seen on the bonnet of a Audi car during the media day ahead of the 84th Geneva Motor Show at the Palexpo Arena in Geneva March 5, 2014. REUTERS/Arnd Wiegmann

The German automaker hopes its car sales will exceed 500,000 this year, executives told reporters on Friday before the Beijing auto show, which opens on Sunday.

Foreign auto makers, such as General Motors Co (GM.N) and Toyota Motor Corp (7203.T), and domestic players such as SAIC Motor Corp (600104.SS) have been competing aggressively in China, where rising affluence is boosting car ownership.

“This country has an increasing number of mega cities,” Audi Chief Executive Rupert Stadler said, naming Beijing, Shanghai and Guangzhou as examples. “In these three areas, there are as many people as, for example, in Germany.”

In 2013, Audi sold 488,000 vehicles in China and a total of 492,000 including Hong Kong. Executives said it aimed to take advantage of the increasing popularity of SUVs and rising demand for compact premium cars.

China’s auto market is expected to grow 8-10 percent this year, easing from last year when it expanded 13.9 percent to 21.98 million vehicles.

Audi is stepping up efforts to unseat German rival BMW (BMWG.DE) as global luxury-car sales leader.

via Audi expects to sell half million cars in China this year | Reuters.

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11/04/2014

China’s soaring potential a springboard for budget airlines | Reuters

The chairman of Spring Airlines requires his employees to use both sides of a sheet of paper before throwing it away and even removed most of the bulbs lighting the corridor to his office – all part of his quest to save money.

A Spring Airlines crew member sells food onboard an Airbus A320 aircraft near Shanghai July 6, 2012. REUTERS/Aly Song

China’s first low-cost airline has been profitable since 2006, its first full year of operation, but the budget aviation market is about to get a lot more competitive as the government moves to promote low-cost travel to meet a surge in demand from an increasingly wealthier population.

Over the last 18 months, Spring has been joined by two new competitors. China’s big state-backed carriers are also looking at launching budget carriers, a strategy industry executives say would be an additional boon to plane makers Airbus Group (AIR.PA) and Boeing Co. (BA.N).

The Civil Aviation Administration of China (CAAC) plans to add nearly 80 new airports by 2020, including a $14.5 billion second airport in the capital Beijing, and is urging other airports to build new terminals and convert existing facilities to handle budget airlines.

The initiative, industry observers say, would usher in a new era for low-cost carriers (LCCs) in a country where one in four people travelled by air in 2013. That number is set to rise to almost the whole population in the next two decades, according to Airbus executives, with China to replace the United States as the world’s largest aviation market during the same period.

via China’s soaring potential a springboard for budget airlines | Reuters.

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08/04/2014

Singapore Airlines to Start First-Ever A380 Superjumbo Flights into India – India Real Time – WSJ

Singapore Airlines Ltd.C6L.SG +0.68% will be the first commercial carrier to operate Airbus A380 superjumbos into India next month, after authorities there lifted a years-long ban on the world’s biggest jetliner.

The first A380 delivered to Singapore Airlines arrives at the Airbus Delivery Centre in Toulouse Blagnac, southern France, in this file picture taken October 15, 2007. Reuters

Singapore’s flag carrier says starting from May 30 it will deploy the double-decker A380, which seats up to 471 passengers, on daily flights to New Delhi and Mumbai, India’s two largest aviation hubs.

Those flights will replace two existing daily services currently flown by smaller Boeing 777 aircraft that are timed about 90 minutes apart, helping boost cost efficiencies for the airline. Another daily 777 service to both cities will remain unchanged, according to the airline.

Major airlines have been lobbying to fly the A380 into India since the aircraft’s commercial launch more than six years ago. Analysts say it will help alleviate worsening congestion at India’s major international gateways, particularly since the number of passengers is expected to rise in the coming years.

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India prevented the A380’s entry for years because the government feared that foreign carriers would gobble up passenger traffic from state-owned Air India and other domestic carriers using the large planes. None of India’s carriers operate the jumbo jet.

India’s civil-aviation ministry finally lifted the unofficial ban in January, permitting A380 flights to and from New Delhi, Mumbai, Hyderabad and Bangalore as part of efforts to liberalize the aviation sector and revive growth.

Nine of the 10 airlines that currently operate A380s have scheduled flights into India, with at least five having expressed interest in flying the large jet into the country.

via Singapore Airlines to Start First-Ever A380 Superjumbo Flights into India – India Real Time – WSJ.

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